Congress under fire as HILTP sparks land sale controversy

The Congress government in Telangana is facing criticism over its Hyderabad Industrial Lands Transformation Policy (HILTP), which allows conversion of industrial lands within the Outer Ring Road. Industries Minister D. Sridhar Babu defended the policy, citing demand for land and examples from other States.

Hyderabad: From the forest lands of Kancha Gachibowli to the auction of TGIIC plots and now the controversy over the Hyderabad Industrial Lands Transformation Policy (HILTP), the Congress is repeatedly contradicting its own earlier position on the sale of government lands.

While in the opposition, the Congress had vehemently objected to auctioning public lands, with Chief Minister A Revanth Reddy, then TPCC president, arguing that government lands were ‘the State’s wealth’ and must be preserved for future needs.

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In sharp contrast, after coming to power, the Revanth Reddy government has been auctioning lands extensively to generate revenue and mobilise funds for welfare and development programmes.

The Telangana Housing Board, Hyderabad Metropolitan Development Authority, Telangana Industrial Infrastructure Corporation (TGIIC) and other agencies have been auctioning lands under their jurisdiction.

Under the HILTP, the government is examining the conversion of lands within the Outer Ring Road (ORR). A total of 9,292 acres have been identified under the policy, of which 4,740 acres comprise plotted areas.

Addressing a press conference on Friday, Industries Minister D Sridhar Babu said the State expected to generate Rs 4,000 crore to Rs 5,000 crore through the collection of conversion fees. The proposal is to collect a conversion charge of 30 percent to 50 percent on the Sub Registrar Value of the lands, rather than market value. The opposition BRS has questioned why industries were being permitted to convert the lands at such low rates.

The BRS pointed out that these lands had been allotted at subsidised rates in the past to enable setting up of industrial units and creating employment. After conversion, industry managements would be free to use the lands for commercial or residential ventures, defeating the original purpose of the allotment, the party has argued.

The Industries Minister, however, maintained there was heavy demand for land parcels equipped with facilities and infrastructure from industries interested in setting up new units. He said that part of the revenue generated through conversion would be used by the TGIIC to procure land elsewhere and develop new parks for future allotments. This, he said, amounted to resource mobilisation for long-term needs.

Defending the auction of TGIIC plots, the Minister cited examples from other States, saying that Andhra Pradesh was allocating land to industries on lease at 99 paisa per acre and Himachal Pradesh had offered a 20-year moratorium, as a result of which many pharma units were established there.

“Land here in Telangana is premium and we cannot ignore the competition from neighbouring States in securing investments. New industrial parks have to be developed and for that resource mobilisation is key,” Sridhar Babu said.